BSEVEDAVAAG Systems LtdHighNeutral
Announced Sat, 30 May · 18:28 IST

1) Pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ('LODR'), the Board of Directors has approved the audited standalone and consolidated ....

Revenue Growth 20pctPat NegativeEbitda Margin CompressionResults View source PDF

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AI summary

Vedavaag Systems reported audited FY2026 results. On consolidated basis, total revenue grew 21% to Rs 12,868 lakhs from Rs 10,593 lakhs, driven by IT/ITES segment. However, profit after tax declined 38% to Rs 520 lakhs from Rs 842 lakhs due to higher employee costs and other expenses. EPS dropped to Rs 2.22 from Rs 3.62. Standalone revenue rose 31% to Rs 9,541 lakhs but PAT fell 44% to Rs 376 lakhs. The auditors issued unmodified opinions with no qualifications. Trade receivables increased significantly (Rs 1,576 lakhs rise in consolidated), indicating delayed collections. Operating cash flow remained positive at Rs 282 lakhs. The company re-appointed Naga Chaitanya and Associates as internal auditors for FY27.

Likely market impact

Revenue growth of 21% is positive, but the 38% decline in profit despite higher sales signals margin compression and cost pressures. Shareholders should monitor the widening gap between revenue growth and bottom-line performance, particularly rising employee and operational costs.